Core views:
The company announced its semi-annual report for 2023, and the performance was in line with expectations. In the first half of 2023, the company achieved operating income of 1,065 million yuan, +107.30% year on year; realized net profit of 348 million yuan, +72.68% year on year; gross sales margin was 42.78%, -3.30 pct year on year. Among them, 23Q2 achieved revenue of 485 million yuan in a single quarter, +70.17% year on year, -16.50% month on month; return net profit was 172 million yuan, +50.29% year on year, and -2.41% month on month. 23Q2 The company's sales/management/R&D/financial expense ratios were 7.25%/5.68%/10.35%/-18.14%, respectively. The sales expense ratio was -2.33pct month-on-month. Exchange earnings led to a sharp drop in the financial expense ratio.
New products are being launched at a steady pace, and shipments of domestic micro-insurrection leaders have increased. The company's 23H1 micro inverters and monitoring equipment achieved sales revenue of 883 million yuan, accounting for 83% of revenue. Among them, the sales volume of micro inverters was about 891,800 units and the sales volume of monitoring equipment was about 1011,000 units. The company 23H1 launched new products for different application scenarios of micro inversion, such as one drag four 2000W three-phase micro inversion, which matches mainstream 182/210 high-power photovoltaic modules, and is more suitable for industrial and commercial photovoltaic power plants; one drag two, one drag four WIFI built-in micro inversion can be used in different scenarios such as balcony photovoltaics and roof photovoltaics, supporting end users to DIY their photovoltaic systems, greatly simplifying the installation process of photovoltaic systems.
Optical storage goes hand in hand to jointly expand new markets. The company 23H1 launched a series of single-phase and three-phase AC-coupled and hybrid energy storage inverter products for the Australian market, and together with micro inverters, it formed a competitive system solution.
Profit forecasts and investment recommendations. Shipments of the company's micro inverters have increased rapidly, and the number of energy storage products has increased steadily. Taking into account the company's leading position and the continuous increase in the penetration rate of micro inverters, the company's EPS in 2023-2025 is expected to be 12.15/19.98/28.22 yuan/share, giving it a PE valuation of 30 times the 2023 performance, corresponding to a reasonable value of 303.68 yuan/share, and continue to give it a “buy” rating.
Risk warning. The growth rate of global PV installations fell short of expectations, exchange rate fluctuations affected demand in some countries, the risk of large price fluctuations in the industrial chain, etc.